Tinubu Approves ₦3.3tn Plan To Clear Power Sector Debts

President Bola Ahmed Tinubu has approved a ₦3.3 trillion payment plan to settle long-standing debts in Nigeria’s power sector and improve electricity supply.

In a statement, presidential spokesman Bayo Onanuga said the debts, accumulated between 2015 and 2025, have now been verified, with “₦3.3 trillion… agreed as a full and final settlement.”

He added that implementation has begun, with 15 power plants signing agreements worth ₦2.3 trillion, while ₦501 billion has been raised and ₦223 billion already disbursed.

Explaining the impact, the statement noted: “With payments reaching the power value chain, generation will be more stable… electricity reliability will improve.”

Special Adviser on Energy, Olu Arowolo-Verheijen, said the reform “is not just about settling legacy debts” but about restoring confidence, ensuring suppliers are paid, and making the system work more reliably.

She added that broader reforms, including metering and service-based tariffs, are underway to deliver “more reliable power for homes” and support businesses and economic growth.